The key point is that banks will assume you have maxed out all...

The key point is that banks will assume you have maxed out all your credit cards when evaluating your borrowing capacity. For example, consider having $1k of ZIP debt versus $1k of credit card debt on a card with a $20k limit. Although it's the same amount of debt, the bank will treat it as $20k in their calculations, potentially reducing your borrowing capacity by about $100k. However, I believe BNPL (Buy Now, Pay Later) systems enable consumers to make purchases more easily by lowering the psychological barrier. But is this moral? Does it contribute to the rich getting richer and the poor getting poorer, becoming hooked on short-term amusements? Consider the scene at a 24-hour vet hospital, where a sign advertises ZIP as a payment option, and the vet informs you it may cost $10k to save your dog after it ate the entire dark chocolate cake. Welcome to the moral ambiguity of 2024.